Facebook Reels is a new video product from Facebook that allows users to create and share short-form videos similar to TikTok. Since its launch in 2020, Reels has become an increasingly important part of Facebook’s offering, especially for creators and businesses looking to reach younger audiences.
One of the monetization options available for Facebook Reels is overlay ads. Overlay ads allow advertisers to display semi-transparent banner ads overlaid on top of Reels videos. This provides a new avenue for monetization for Reels creators.
However, overlay ads are not available to all Reels users and pages. Facebook has specific eligibility requirements that creators and pages need to meet in order to run overlay ads and monetize their Reels content. Meeting these requirements is key for anyone hoping to earn money from their Reels videos.
In this article, we will provide an overview of the eligibility requirements for overlay ads on Facebook Reels. We will cover the requirements for both individual creators as well as Facebook pages. Understanding these requirements can help you optimize your Reels strategy to start monetizing your content.
Eligibility Requirements for Individual Creators
For individual creators hoping to monetize their Reels content with overlay ads, there are a few key requirements that need to be met:
Minimum Follower Threshold
In order to run overlay ads, creators must have a minimum number of followers. As of October 2022, creators need at least 10,000 followers to be eligible for overlay ads.
This follower threshold ensures that advertisers are reaching a substantial audience with their overlay ads. Reels from accounts with too few followers would not deliver enough value to advertisers.
Content Category
Only certain content categories are eligible for overlay ads on Reels. As of now, the eligible content categories include:
- Beauty & Fashion
- Cooking & Recipes
- DIY Projects
- Fitness
- Gaming
- Singing & Music
Reels focused on other topics outside of these categories are not able to run overlay ads at this time. Facebook may expand the categories in the future.
Good Account Standing
To be eligible, a creator’s account must be in good standing and adhere to Facebook’s terms of service. Accounts that have faced restrictions or violations within the last year will not have access to overlay ads.
Following Facebook’s community standards around harmful content, bullying, harassment, etc. is important for maintaining eligibility.
Monetization Products Opted-In
Creators need to have monetization products enabled on their account to run overlay ads on Reels. This includes opting into the Instagram Partner Program and Facebook In-Stream Ads program.
Having these monetization products switched on signals to Facebook that your account is ready to earn money from its content.
Eligibility Requirements for Facebook Pages
In addition to individual creators, Facebook Pages can also run overlay ads on their Reels content once certain eligibility requirements are met:
Page Likes Threshold
Similar to the follower threshold for individuals, Pages need to reach a minimum number of Likes before gaining access to overlay ads. Currently, that threshold is set at 10,000 Likes.
Sufficient Recent Posting
The Page needs to have regular posting activity to be eligible. Specifically, at least 5 posts must have been made in the last 60 days. Pages with insufficient recent activity are deemed ineligible.
Content Category
As with creator accounts, Facebook Pages can only run overlay ads on Reels if the content falls into one of the approved categories (Beauty, Cooking, Fitness, etc).
Good Standing
The Page must adhere to Facebook’s terms and be in good standing to qualify for overlay ads. Pages that have faced any restrictions or violations within the last year will not have access.
Monetization Products Enabled
Pages must have Reels monetization enabled through the Reels Play Bonus program. This signals to Facebook that the Page is ready to earn money from its Reels content.
Overlay Ad Formats
Once the eligibility requirements are met, there are a couple formats that overlay ads can take on Reels:
Banner Ads
Semi-transparent banner ads can be displayed at the bottom 20% portion of the screen during Reels playback. These banner overlays provide a way to integrate ads in a non-interruptive format.
Stickers
Interactive stickers can be placed on Reels, functioning similarly to product tags. When tapped, these stickers either redirect to an external site or expand to display more ad content.
Sticker overlays provide a natural ad integration directly into the Reel content itself.
How Overlay Ad Revenue is Calculated
Eligible Reels creators and Pages earn a 55% revenue share from overlay ads displayed on their content.
The exact revenue earned will depend on factors like:
- Ad rates based on auction bidding
- Reel viewership and engagement
- Ad inventory and demand
Higher performing Reels typically earn more from overlay ads compared to content with weaker engagement metrics.
Facebook provides analytics within the Reels tab showing earnings from overlay ads so creators can gauge their performance.
Example Overlay Ad Earnings
As an example, consider a Reels creator who displays overlay ads on 5 different Reels in a month. Performance of those Reels is as follows:
| Reel 1 | 2,000 impressions | $10 total revenue |
| Reel 2 | 800 impressions | $5 total revenue |
| Reel 3 | 600 impressions | $4 total revenue |
| Reel 4 | 1,200 impressions | $8 total revenue |
| Reel 5 | 400 impressions | $2 total revenue |
With 4,600 total impressions generating $29 in overlay ad revenue, the creator would earn 55% of that amount:
**$29 * 0.55 = $15.95 total overlay revenue**
This demonstrates how the 55% rev share can translate to actual earnings based on performance. Creating engaging Reels content that generates strong viewership is key to maximizing earnings.
Optimizing Your Reels Strategy
Now that we’ve covered the eligibility requirements, here are some tips to optimize your Reels content and maximize your potential overlay ad earnings:
Produce Reels Frequently and Consistently
The more quality Reels content you publish, the more opportunities there are to monetize with overlay ads and reach a wider audience. Aim to create fresh Reels at least a few times a week.
Experiment with Popular Music and Effects
Leveraging trending songs, AR effects, filters and stickers can help your Reels stand out and gain traction. Stay on top of what’s trending in Reels and incorporate it into your content strategy.
Encourage Engagement
Prompting viewers to like, comment, share and save your Reels can boost engagement. Higher engagement leads to more impressions and ad revenue.
Optimize Video Length
According to Facebook, the ideal video length for Reels is between 30-90 seconds. Stick within this range to maximize viewership and ad performance.
Re-Share Top Performing Reels
Repurposing your best Reels can help broaden your reach and provide more monetization opportunities via overlay ads.
Conclusion
Overlay ads provide a solid monetization avenue for eligible Reels creators and pages. By consistently creating engaging Reels aligned with Facebook’s approved content categories, you can build your following and start earning revenue from overlay ads.
Focus on producing quality Reels that resonate with your target audience. With the right strategy tailored to Facebook’s eligibility requirements and best practices, overlay ads can become a valuable addition to your social video strategy.